Report: India's economic rise must now translate into individual prosperity; growth yet to reflect in per capita income
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India has surged ahead in global GDP rankings over the past decade, but its per capita income remains among the lowest in the top 10 economies. In this context, a new report by Llama Research has underlined the need for India's next growth phase to focus on improving individual prosperity, reported news agency ANI.
Titled 'India's Growth: Journey from Size to Strength', the report calls India's low per capita income 'a window of compounding potential' rather than a flaw. It argues that India is at a turning point where growth must move from macro achievements to boosting income levels and living standards across the population.
'India is not just rising in rank, it's building the foundations to lead from the ground up,' Llama Research noted.
The report credits the country's digital formalisation, manufacturing push, demographic strength, macroeconomic stability, and strong policy framework as tailwinds for inclusive growth.
Despite rising to the fifth spot globally in terms of GDP and projected to overtake Japan this year, India ranks at the bottom in per capita income among the top 10 economies.
To meet its vision of becoming a developed nation by 2047, 'Viksit Bharat', India needs to sustain a growth rate of around 8 per cent for the next two decades, as mentioned in the Economic Survey 2024-25, tabled in Parliament on January 31.
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The journey has been significant. In 2013-14, India was 11th on the global GDP chart and part of the so-called 'Fragile 5' economies, a term coined by Morgan Stanley for emerging markets with weak fundamentals. Now, with growth rates of 8.7 per cent (2021-22), 7.2 per cent (2022-23), and 9.2 per cent (2023-24), India has defied that tag.
The recently concluded FY25 saw a real GDP growth of 6.5 per cent.
However, rating agency ICRA has trimmed its growth outlook for FY26 to 6.2 per cent, citing global trade uncertainties and a slowing growth base.
While rural demand is expected to hold up, weak merchandise trade and inflationary pressures could weigh on broader economic momentum.
Despite this, the outlook remains positive on services exports, domestic consumption, and public capital expenditure. ICRA projects the fiscal deficit at 4.4 per cent of GDP in FY26 and sees the current account deficit between 1.2-1.3 per cent.
To truly transform, India must not only expand its economic size but also ensure the fruits of growth reach individuals, especially the lower-income population.
As the Llama report puts it, 'this is a question of values and ideology.'
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